Of course it is. Investors have to pony up for 100% of the restaurants, so society as a whole has to pay one way or another for each economic experiment EDIT

Of course it is. Investors have to pony up for 100% of the restaurants, so society as a whole has to pay one way or another for each economic experiment EDIT I should clarify - since investors know they have to pay for 100% of restaurants, of which 90% will fail, they price this in when they decide to invest in a restaurant. Drug companies have to pay for all ten trials, not just the one that works out. Restaurants are a bad example because people invest in it on an emotional basis. Drug trials are probably decided on more the same basis as bond issues or insurance. If the risk of failure is high, investors have to demand a high premium or go broke.